Accounting plays an imperative role in any medical office, sometimes serving as the supporting force allowing the organization to work at its fullest potential in an organized manner. Every type of organization needs an accounting department, for it is impossible to continue working without one.
If you are a smaller practice, you may not have the ability to have an entire department or a person dedicated to the business’s accounting. However, you
Generally Accepting Accounting Principles (GAAP)
These are a set of principles, standards, and accounting procedures used to compile financial statements. They are the accepted methods of recording and presenting financial transactions and necessary data.
Compliance with these principles is required by law. In non-compliance, an organization may be fined by the United States Security and Exchange Commission. Other than following the general principles, each organization may have slightly different procedures regarding the nature of its operations.
Elements of Financial Management and Accounting
There are four critical elements in Accounting and Financial Management. These elements are found below.
Planning enables an organization to create concise guidelines and goals to make sure that the office is successful in the future. Goals also allow managers and decision-makers to track progress. Planning can be done by management, the accounting department, or a third-party accounting firm depending on how your business handles the accounting.
Controlling gives an organization the ability to make sure that all departments that are a part of the organization adhere to the guidelines and contribute their part towards the achievements of goals. It also enables an organization to find problems that come up and allows them to fix them properly.
Directing and Organization
The Directing and Organization element is one of the more essential elements of financial management. It ensures efficiency, allowing an office to work at its fullest potential. Problems may arise daily, and this element helps to fix these problems by giving an organization the chance to work through financial management.
Decision Making utilizes the other three elements (i.e., controlling, planning, and directing, and organizing) by analyzing all of the gathered information and coming up with final decisions to improve and optimize financial management in a business.
Ethics and Accounting
Accountants are bound to the highest standards of ethics compared to any other profession. After all, the information received via financial statements and bookkeeping is used to make critical decisions related to a business’s financial standing. If an organization doesn’t have an accounts department, such information would not be available to the business’ decision-makers.
Concerns regarding ethical standards, along with corporate and social responsibility, have increased in their importance. These days, private and government organizations have objectives to mark and enact proper and stringent ethical standards. Organizations are also subject to review to ensure the enforcement of these guidelines, policies, standards, and goals.
Accounting in Medical Offices
An accounting department that is working in/for a medical office holds immense importance for its role in the business’s success (or failure).
First, it should follow the GAAP guidelines. This will ensure that the organization is not penalized by law enforcement in any manner. Mistakes made by the accounting department could result in legal procedures that would harm the reputation of the entire medical office.
At the same time, an efficient accounts department can provide information to decision-makers who can then streamline operating procedures to ensure the financial success of the medical office. Although one of the most important tasks of medical offices is to provide medical services, it can’t do so without an accounting department that is effective and successful.About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.